ASIA Travel

State of the Spanish Hotel Industry

Search ASIA Travel Tips .com Send to Friend ASIA Travel Latest Travel News Thursday, 10 September 2009

With visitor numbers expected to drop 10% in 2009, the Spanish hotel market is suffering greater year-on-year declines in performance than some of its European neighbors.

 Visitors from major source markets such as Germany, the U.K. and France are in decline, with U.K. travelers further deterred by the 20% weakening of Sterling against the euro during the past 12 months and the increased competition from destinations such as Turkey and Egypt.

According to data compiled by STR Global, decreasing occupancy (-13.5%) at Spanish hotels has led to heavy price cutting (-11.8%), which together have dragged RevPAR down by -23.7%.

“Significant price cuts have failed to stimulate demand”, said Elizabeth Randall, managing director of STR Global. “Until occupancy recovers, it is hard to see from where improvement in Spain will come. It may now take some time to make up the fall in RevPAR, which is amongst the highest in Southern Europe.”

Poor performance compared with international neighbours is one thing, but Spain is also suffering from the impact of the economic crisis on the domestic market.

 The abrupt decline of the real estate industry and an unemployment rate of around 19%, the highest in Europe, make for tough times across the country.

Spain’s two biggest markets, Madrid and Barcelona, may still have higher rates and RevPAR than the national average, but both are in more significant decline. Madrid’s RevPAR through July 2009 has fallen 32% compared to 2008, a rate of decline only exceeded by Moscow amongst Europe’s capital cities.

“Madrid has been working hard on its image as a cultural destination to complement its business reputation,”  Randall explained. “However, our Comprehensive Pipeline Outlook report shows an increased supply of 1,021 rooms over the past 12 months and a further five hotels under construction. This additional supply together with the reduced demand is almost the worst-case scenario. Barcelona has seen a similar decline in RevPAR with a fall of 28.5%. The city’s position will not be improved as the STR Global Comprehensive Pipeline Outlook report shows a further 1,290 rooms under construction, including the 473-room W Barcelona, the second W Hotel in Europe, which will open in October ‘09.”

STR Global’s reach in Spain is significant with more than 730 hotels representing some 123,000 rooms sampled across the country. In line with global hotel performance, select Spanish cities are experiencing contraction across the board, highlighted by the double-digit declines in year-on-year occupancy in all but three cities (Bilbao, Cordoba and Marbella).

 The 59.4% fall in Zaragoza’s RevPAR is dramatic and can only be attributed to the build-up to the International Expo “Water and Sustainable Development”, which took place from June to September 2008.

See other recent news regarding: Airlines, Airports, Flights, Codeshare, Lounges, First Class, Business Class, GDS, Rewards, Miles, Hotels, Apartments, Promotions, Spas, New Hotels, Traffic, Visitor Arrivals, Cruises, Free Deals, STR, Spain, Madrid, Barcelona, Performance, RevPAR, July 2009, August 2009

Subscribe to our Latest Travel News Daily Email Free of Charge by simply entering your email address to the right. You can also stay updated with our RSS Feed Free Travel News RSS Feed and even add the travel news to your website. Have questions? Please read our travel news FAQ.
Exclusive HD video interview with Mr. Fumihiro Sakakibara, General Manager - Japan, Macao Government Tourism Office. Aviation industry update from the Group CEO of AirAsia, Mr. Tony Fernandes, and Gary Chapman, Emirates' President Group Services and dnata. Exclusive HD video interview with Mr. John R. Rolfs, General Manager of The Ritz-Carlton, Tokyo and Vice President Japan & Korea. In this interview, filmed in a luxurious suite at The Ritz-Carlton, Tokyo on Sunday, 24 September 2017, we ask Mr. Rolfs to tell us more about the property.
Macao Tourism Update Aviation: AirAsia and Emirates The Ritz-Carlton, Tokyo
What exactly is going to happen to The Dusit Thani Bangkok hotel, when will it close, what about the staff, when will the new Dusit Thani Bangkok open and what will it be like? In this exclusive HD video interview with Ms. Sukanya Janchoo, General Manager of The Dusit Thani Bangkok, Steven Howard of asks Khun Sukanya about the hotel, its markets, RevPAR and these major changes. Travelodge Hotels Asia’s Brands and Expansion Plans - Exclusive HD Video Interview with Stephen Burt, Chairman. Exclusive HD video interview with Alejandro Bernabe, Group Director of Avani Hotels and Resorts. We talk about Avani Hotels' future plans and what exciting new developments are in the pipeline. You will also learn that Avani is about to announce a new sub brand, is currently building its first resort with private pool villas and what the group's position is on new technology.
Dusit Thani Bangkok Travelodge Hotels Asia Avani Hotels & Resorts
Jonathan Wigley, CEO of Travelodge Thailand, outlines expansion plans in HD Video Interview. Exclusive HD video interview with Myanmar's Minister of Tourism and Hotels, H.E. U Ohn Maung, about the status of tourism in the beautiful and mystical country of Myanmar (formerly known as Burma). Birth of a Luxury Thai Hotel Brand - HD Video Interview with Christopher E. Stafford, Chief Operating Officer of the newly formed 137 Pillars Hotels & Resorts.
CEO of Travelodge Thailand Myanmar Tourism Update Birth of Luxury Thai Hotel Brand
This HD video tour of Thai AirAsia X's brand new 337-seat Airbus A330-300 aircraft was filmed at Don Mueang Airport in Bangkok, Thailand on 14 May 2014  Exclusive HD video interview with Jaime J. Bautista, President & Chief Operating Officer (COO) of Philippine Airlines (PAL) HD video of the interior and exterior of a Thai Vietjet Airbus A320-200.
Thai AirAsia X A330-300 PAL President & COO Thai Vietjet A320-200
Inside Qatar Airways Boeing 787-8 Dreamliner - HD Video It takes 800 workers between 65 and 80 days to assemble, install, test, paint, furnish and deliver an Emirates Airbus A380. Showers, Bars, Lounge - The Emirates Airbus A380 Has Them All - HD Video Tour Thai Airways International Takes Delivery of Brand New Boeing 777-300ER
Qatar Airways B787 Emirates A380 Thai Airways B777-300ER
Latest Travel News
Copyright © 1997-2017